What are the HUD Income Limits?
HPD uses the HUD Income Limits to set income
requirements for affordable housing. The limits come from a formula created by
the US Department of Housing and Urban Development (HUD). The formula compares
incomes and the cost of housing. A detailed explanation of the formula
For 2008, 100% of the HUD Income
Limit for a family of four in New York City is $76,800 and it is $53,700 for a
Why is HPD no longer using AMI?
HUD uses two ways
to calculate income requirements under HUD Income Limits: one uses Area Median
Income (AMI) only, the other looks at housing costs as well as AMI. In 2008 New
York housing costs reached a level that moved us from using AMI only to
calculate HUD Income Limits to using housing costs and AMI. It is possible that
we could move back to using just AMI in future years. Whether that happens will
be determined by HUD’s regulations.
$76,800 is much higher than the average income in
many neighborhoods in NYC? Why can’t HPD use an income limit that reflects each
The income limits for affordable housing developments
are set by HUD. Within that framework, HPD can target particular income groups
and we consider the needs of the neighborhood as well as the economics of the
development when doing so. HPD also works to find ways to finance affordable
housing for income groups which are currently the most difficult to reach.
According to research conducted by HPD, in Fiscal Year 2006, three-quarters of
HPD and HDC’s individual programs served low-income families, a larger share
than is required by the program guidelines. Of the low-income households
that moved into their homes in FY2006, the majority were extremely low income
households, with incomes less than 30% of HUD Income Limits, equivalent to
$14,900 for a single person or $21,250 for a family of four.
Chart of HUD income limits